Case Scenario 3: B.B. Mangler.
B.B. Mangler is a top U.S. business-to-business distributor of maintenance, repair, and service equipment, components, and supplies such as compressors, motors, signs, lighting and welding equipment, and hand and power tools. Customers include contractors, service and maintenance shops, manufacturers, hotels, government, and health care and educational facilities. Mangler's industry is typically referred to as MRO, an acronym for maintenance, repair, and supplies. Mangler states its strategy as having the "capacity to quickly offer an unmatched breadth of lowest total cost MRO solutions to business." Mangler's GoMRO sourcing center for indirect spot buys locates products through its unique database of 8,000 suppliers and 5 million products. Mangler also dominates the North American market in terms of its sheer local physical presence. It has 388 physical branches in the U.S. largest cities, including Puerto Rico (90 percent of sales), 184 in Canada, and 5 in Mexico. This physical presence also has garnered Mangler a reputation for excellent, dependable service in its target markets, which in turn translates into a vast and loyal clientele.
-(Refer to Case Scenario 3). The Internet threatens to displace physical locations as a basis for competitive advantage. If Mangler's vast network of branch offices were an integral part of its core competencies,what might the branches become if the basis for competitive advantage in the MRO industry moves to the Internet?
A) a core rigidity
B) a capability
C) an intangible resource
D) a tangible resource

Question

Quizplus · Accepted Answer

If the basis for competitive advantage in the MRO industry moves to the Internet, Mangler's vast network of branch offices may become a core rigidity. A core rigidity is a resource or capability that was once a source of competitive advantage but has become an impediment to innovation and adaptability. In this case, Mangler's branch offices may become outdated and inefficient in comparison to the speed and convenience offered by the Internet, thus hindering the company's ability to innovate and adapt to changing market conditions.